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"It was already out there so seemed no point in objecting except on principle", Giuliani said.

NY is a "one-party" consent state, meaning that as long as one participant in the conversation gives permission to record, it is legal.

To pursue criminal charges against Cohen for breaking federal election law, prosecutors would have to have evidence that the payments went to the women to influence the election, rather than just to protect Trump personally.

Former Playboy model Karen McDougal claims she had an affair with Trump after they met in 2006, shortly after Trump's wife Melania gave birth to their son Barron.

A person familiar with Cohen's legal strategy told NBC News that "a lawyer taping a client is not illegal".

The story was never published.

In a morning tweet from his golf course in Bedminster, New Jersey, Trump said that it was "inconceivable that the government would break into a lawyer's office (early in the morning) - nearly unheard of".

In a statement Friday, President Trump's attorney Rudy Giuliani confirmed the recording's existence and said no payment was ever made.

The president said in a tweet it might be illegal for a lawyer to record a client.

He said it was likely leaked as a message from Cohen - "a final shot across the bow at Donald Trump to send a message that time is running out and if Donald Trump does not bring Michael Cohen into the tent or try to protect him, serious consequences are going to result".

So while the New York Times is enjoying a short-lived happy dance about discovering the recording, it will yield nothing that can be used in any legal proceeding nor can it be used to discover other evidence. Giuliani added that Cohen was speaking with Trump to tell him that information and Cohen recommended Trump buy the rights from AMI. That conversation is protected by attorney-client privilege and so would any secret recording of the conversation [emphasis added]. Giuliani also said the recording in question is less than two minutes long.

Mr Davis said "any attempt at spin can not change what is on the tape".

McDougal is suing the owner of the National Enquirer, saying the company paid her $150,000 for a story about the alleged affair but then withheld it from publication. He also said that Trump told Cohen that any payment should be by check, not cash, so it could be documented properly.

What has Trump previously said?

However, 11 states, including Florida, where Trump spends a lot of time, do require both people in a conversation are aware a recording is taking place.

Mr. Cohen, an attorney, received a monthly retainer, not from the campaign and having nothing to do with the campaign, from which he entered into, through reimbursement, a private contract between two parties, known as a non-disclosure agreement, or NDA.